Abstract

Private Placement Life Insurance (PPLI) is the crown jewel of insurance planning for the ultra-high net-worth single family office. However, there seems to be an asymmetry of knowledge about the arrangement between UHNW and HNW. Business families and HNW seem uniquely suited for PPLI, and most have never heard of it. A convergent mixed method design was chosen for this study in order to help practitioners, product structurers, asset managers, and policyholders best understand both the qualitative and quantitative phenomena of PPLI. The sequential exploratory strategy deployed involves a first phase of qualitative data collection and analysis, followed by a second phase of quantitative data collection and analysis that builds on the results of the first qualitative phase.

The surveys indicated a legitimate interest and market demand for PPLI and dynasty trust planning among the HNW. This demand for more advanced planning integrating asset location techniques is both real and unmet. This dislocation of unmet demand is centered on the supply side, as many advisors (attorneys, CPAs, investment advisors, and insurance professionals) are also unaware and unable to educate their clients about the beneficial elements of dynasty trusts and private placement life insurance. The time series analysis supports the notion that it is possible for a business family to structure a PPLI policy to create the same simulated after-tax financial outputs (such as retirement income and inheritance to their children) as a standard account arrangement, with additional assets going to 501(c)3 charities for enhanced social impact.

Library of Congress Subject Headings

Life insurance; Dynasty trusts; Family foundations; Private equity

Date of Award

2021

School Affiliation

George L. Graziadio School of Business and Management

Department/Program

Business

Degree Type

Dissertation

Degree Name

Doctorate

Faculty Advisor

James DiLellio

Download

Share

COinS